Governor Jerry Brown signed bipartisan legislation authored by Senate Majority Leader Ellen M. Corbett (D-East Bay) on July 11, 2013 that strengthens existing deficiency protections for borrowers after losing their homes in foreclosures. Co-sponsored by the Housing and Economic Rights Advocates and the California Reinvestment Coalition, SB 426 prohibits deficiency collections and adverse credit reporting on non-recourse loans following a non-judicial foreclosure. In spite of existing anti-deficiency protections for residential borrowers in California, some creditors and debt collectors continue to attempt to collect debts by non-judicial means after a foreclosure.

SB 426 was supported by the California Association of Realtors and the Center for Responsible Lending during the legislative journey.